With the end of the year comes the likelihood that the SBA Guarantee Fee will not be waived any longer. We are all waiting for the latest information on what will occur at the end of the year. Will we be back to 75% Loan Guarantees and full SBA Guarantee Fees or will we stay the same are now. 90% Guarantee and No SBA Fees.
2010 did see one major change, The SBA 7A loan which was capped at 2,000,0000 (two million dollars) has been raised to 5,000,0000 (five million dollars).
Lastly be aware that now for the first time SBA Loans can be applied to Self Storage Loans as well as Mobile Home Park loans. What that means is that a qualified buyer can now buy a self storage facility anywhere in the US for as little as 15% down or in some instance may be even as little as 10% down.
With the cost of real estate still plummeting this is a great way to get an increased ROI or IRR by purchasing a cash flowing property with 10% to 15% down you are almost guaranteed a positive cash flow from day one. At the least it is a GREAT DEAL.